Dear Justis,
What we have always done over the years is have a line of credit, it is secured against investment property, therefore is about 1% higher.
But perhaps you could do the same and secure it against your home.
We have used it for anything and everything as necessary, including the business.
Our accountant has no problems with it either.
As I dislike the bank earning even a pip out of us, as soon as any money comes in to our everyday account, I immediately transfer most of it to our LOC.
I know the exact date on which our mortgage is paid and our two credit cards (which we pay off in full every month) so I transfer back just in time, it is like a game to me
I pay extra off the loan every month and with the extra credits which I put in, the balance outstanding is dropping very quickly.
Any money that comes in to the farm a/c including GST rebates also get transferred to the loan a/c. It is simple, as all at the same bank, transfer is instant.
My friend has an offset a/c which sounds much easier, any money in her everyday a/c is automatically set against her interest payments.
So you have no need to be paying 10%. You will still get tax relief on the interest, just check with your accountant. I like to keep up to date with financial matters and not meaning to boast, but often I have suggested things to him that he should have told us.
Before we sold the farm which we had bought next door, we set up a SMSF this enabled us to avoid any CGT by putting the profit straight into that, just for a few days and then withdrawing it to pay down the loan.
All perfectly legal and above board I may add.
It was the same story with our accountant in the UK.
Perhaps because I was so very skint when young, I was always very careful with money and wanted to earn about economics. Don't get me wrong, I am not mean.
We have helped a lot of people over the years, but we live a pretty simple life.
Now this week I am being literally forced to throw out all of my feral clothes, before we move back to the burbs. 99% of the time I wander around the farm with ancient clothes, full of holes lol.
No designer clothes for me, I would rather give money to people who need it tbh.
So we will have some money soon, it will not change us though. If we did decide to fly back to the UK, which we used to do every year, we have promised ourselves that we would fly business class. That would mean having to dress up, what a drag!
But we are putting it off as long as possible.
We plan to go out for lunch 2 or 3 times a week, which will save us cooking as we are both a bit over it for now.But I will still make my healthy peasant soups and want to grow veggies again. We will see how we go, but may give some to our 6 kids between us.
Good grief this has turned into a diatribe lol.
@Veritas2000 our dear friend. You and your lovely wife are in our thoughts and prayers and we are all I think, very happy to give you a little light entertainment.
I now need to find a song for you and your dear wife. Hold on..............
Here is a beautiful album, I hope you enjoy it. x
https://youtube.com/playlist?list=PLL-NbN8uTOiitYaDdzabbfJLMMB4wAvCe
